Businesses want more than their customers to buy from them. They want their customers to repeatedly buy from them. Do so you see the difference? Take a look at how you consume products and services. What are some considerations you make when choosing the brand to support? This is where repetition, consistency, and predictability come in. Consumers want a rewards program that incentivizes them. With the right one, any business can turn customers into happy and loyal consumers.
Membership Programs
If you want to offer membership for exclusive perks in your store, make sure you have something more to offer than your competitors don’t. You also need a solid marketing strategy. Look for membership marketing services that will comprehensively create a program that will reward and incentivize your loyal members.
You can create two kinds of membership programs: paid membership and earned membership. If you are familiar with the difference between marketing and public relations, that applies to this, too. Paid memberships are like marketing and advertising. It means people are going to pay a certain amount to get access to your offers. Costco is a members-only store. You have to pay to become a member.
Earned membership is like public relations. Customers have to earn points and reach a goal to get awarded the membership. The more shopping they do, the faster it will be for them to reach their desired outcome. Credit card companies and retail stores popularly use this type of membership program, wherein customers have to reach a certain number of points to access exclusive offers. If you are a platinum rewards holder of any retail store, you know what this means.
Tier-based Programs
With every pound you spend, a loyalty program will reward you with points. You will then unlock a series of rewards every time you hit a milestone. This is a tier-based program. It’s a bit like video games where you have to complete a level before unlocking the next one. It’s an effective strategy for pushing customers to buy more and repeatedly.
Some levels that they can unlock can give them free shipping or discount coupons. This way, when customers think about buying from another company, they’ll revert to your business. If they are going to spend money, they might as well do it in your shop where they can earn points and unlock the next rewards.
Mission-driven Programs
Your loyalty rewards program doesn’t always have to be about discount codes. It can be about values and causes that align with your company’s mission and vision. One popular way to do this is to donate a part of the proceeds of a product. Every time a customer buys this product, a dollar or two will go to a fund for a cause or charity organization. Make sure that your company’s values are aligned with the cause you are supporting, though.
Spend-based Programs
Your business should also reward customers who spend more money in a shorter period of time. This means that if a customer spent $1,000 in a month, shouldn’t that customer get more perks than those who spent $1,000 in six months? How do you encourage these kinds of customers to spend more in your company?
Give them a different membership or loyalty card than the one you give to your other customers. In credit card companies, they call this the platinum or the titanium card. Spend-based programs reward customers by giving them complimentary lounge access (for airlines) or access to early sales (retail stores). Have you been rewarded for frequently flying? Then, didn’t you appreciate the early boarding perk? Not having to queue with the other passengers is a benefit that others will definitely spend on.
More than anything, those who spend a huge amount of money in your company want to feel special. They want to receive more perks than what the others are receiving. It is an important distinction for them.
Subscription-based Programs
There is a new kid in town. It’s called the subscription box program. It’s not the typical loyalty reward program where you get awarded for every pound you spend. In a subscription-based program, the company will send a prepaid and pre-ordered box of goods to your doorstep every month. The deal is that because you are a subscriber, you get the box cheaper than those who buy it per single order.
The key to offering these loyalty programs is to understand the strength of your company and the demands of your customers. Loyalty programs are great at persuading your customers to put you on top of their minds. However, make sure to use these programs with caution because programs like these can also isolate other sectors of the market.
